Partner Article

UK traders imprisoned for insider dealing

Six UK traders have been imprisoned, after they were found guilty of “a deliberate, planned and dishonest insider share dealing”.

The trial, which is the longest and most complex prosecution to date, cost the Financial Services Authority (FSA) £5 million and aimed to create a “credible deterrence” to cracking down on abuse of the market.

The guilty six were deemed to have betrayed key confidentiality principles necessary to the operation of commercial businesses.

Judge Jeffrey Pegden told Southwark Crown Court in London said: “You knew precisely what you were doing.”

When sentencing, the Judge added an element of deterrence to the prison terms due to the time consuming nature of the cases.

Ali Mustafa, Pardip Saini and Paresh Shah were all sentenced to three and a hald years imprisonment, while Bijal Shah and Truptesh Patel were imprisoned for two years each.

Neten Shah was sent to prison for 18 months.

The six used confidential information on planned mergers from the print room at UBS Bank to earn over £700,000.

This was posted in Bdaily's Members' News section by Ruth Mitchell .